Can my mortgage lender force me to sell?

Nala71

Hi there
My ex husband and I are just at the early stages of divorce. We own a property as Tenants in Common and I own the larger share. My plan is to buy my husband out with some money I inherited. However, my mortgage company have said that once his name is removed, they will not allow me to continue on the existing mortgage, nor will they give me a new one as I do not have a high enough income to cover the outstanding mortgage. I have been paying it by myself for the last two years (and havent missed a payment in the 10 years we've been with them) and have the highest credit score rating you can get (on Experian). Once he requests his name is removed can they force me to sell? We are in a fixed mortgage so this would also mean having to pay a £7k early repayment fee.
Thanks.

glosoli

His name will not be removed until the bank is happy with it, therefore no they cannot force you to sell. He will remain 100% liable for the mortgage until such times as you take the mortgage on in your own name, based on your own affordability (or with someone else). However, you should ask about a solicitor about him forcing you to sell, as he won't be able to get his name removed from the mortgage otherwise.

Nala71

Thank you glosoli. If I find someone to come on the mortgage with me will that avoid me having to pay the 7k early repayment fee or will they want to end existing mortgage and offer me a new one?

csgohan4

unfortunately lenders now base mortgages on affordability and due to your low income you fall below the threshold. It doesn't matter if you have paid the mortgage or not, technically your supposed to and you get no reward for that as it is a contract.




Interests rates are low now, but who knows in the future

glosoli

If you are staying with your existing lender then you will not have to incur the ERC, however if you are required to break the product and extend terms for affordability reasons then you will.

If you are remortgaging to another lender then you will incur the ERC and the other lender will base the application on the redemption figure of your existing mortgage unless you can afford to reduce the balance.

Natasha.rb

I had a similar situation with my ex.
I got a 'declaration of trust' signed and verified in front of a solicitor stating that my ex would stay on the mortgage until i could affford to go on to my own deal, and that when that time came if there was more equity or the situation changed it would make no difference- my ex couldn't demand more payment or anything.
could that be an option?

Nala71

Hi Natasha, what you suggested was the original plan but then my ex decided that he didn't want his name to stay on the mortgage as he wants to move on with his life and buy his own place. I can still buy him out but if his name isn't removed from the mortgage then I think he will seek a solicitor to force me to sell. The biggest issue with that is I can't afford to buy in London but need to stay here to care for my dad and be close to my family so really need to stay put.

Number75

You need your solicitor on this one.
It may be fair that he comes off the mortgage, forcing a sale - I think it often is. But you can argue against it - certainly for an agreed period of time.
Do you have children who will be mainly resident with you? That could make your position stronger to a court. Being close to your family less likely to be persuasive.

Nala71

Thanks Number75. I agree, it is fair that he comes off the mortgage in order to move on with his life but I am trying to avoid it being at the expense of my own quality of life and that of my parents who are reliant on me. My ex and i didnt have any children so I imagine my case to remain in the house would be weak. I think I will need to seek legal advice on this. Thanks